Why Free Trade of Consumer Electronics is Vital to American Innovation and Economic Growth The ability for the United States to enter into free trade agreements (FTAs) with other nations is vital to the continued international expansion of the consumer electronics and high-tech industries. Existing FTAs have allowed greater access to other markets by eliminating harmful tariffs and establishing a level playing field for American companies and workers. This has allowed companies to more easily facilitate operations in those markets by improving intellectual property rights, standards and increased transparency. Future agreements, created by free and open trade, will not only open additional untapped markets, but also allow these industries to continue to create high-paying U.S. jobs and positively contribute to the U.S. economy. Key Facts: Consumer electronics play a significant role is our daily lives with an average 25 devices in every American household. In 1975, the average household had just one device.
(CEA Market Research, October 2007)
Americans purchased CE products to the tune of $145 billion in 2006, a record amount that exceeded predictions and registered a 13 percent increase over the previous year.
(CEA Market Research, 2006)
From 1990 to 2005, employment because of the CE industry grew 19 percent in the United States. In 2005 alone, the CE industry helped add 30,000 American jobs.
(CEA Market Research, U.S. Bureau of Labor Statistics, Spring 2006)
From 1994 to 2004, employment in the CE retail sector experienced a productivity increase of 309 percent (compared to general retail productivity increases of 52 percent).
(CEA Market Research, U.S. Bureau of Labor Statistics, Spring 2006)
The CE U.S. manufacturing sector, from 1994 to 2004, experienced a productivity increase of 126 percent (compared to general manufacturing productivity increases of 48 percent over the same time).
(CEA Market Research, U.S. Bureau of Labor Statistics, Spring 2006)
The CE industry pays higher wages in retail and manufacturing than other industries, 18 percent higher in retail, 15 percent higher in manufacturing.
(CEA Market Research, U.S. Bureau of Labor Statistics, Spring 2006)
Since 1965, exports of goods and services have increased 4,000 percent (1000% in real terms) while imports have increased 8000 percent (1300% in real terms). Over this same time, the US economy has grown more than 350 percent. The US economy produced more in 2007 than it ever has at any point in its 200 plus year history.
(U.S. Department of Commerce: Bureau of Economic Analysis)
From 2000 to 2006, U.S. CE exports increased 12 percent to Peru, 35 percent to Columbia, and 44 percent to Panama
(American Electronics Association, June 2007)
Over the last five years, U.S. high-tech exports to South Korea increased by 45 percent, totaling $10.6 billion in 2006
(American Electronics Association, June 2007)
CE imports from China alone support more than 60,000 American jobs (net) across a range of sectors in the United States
(CEA Market Research, 2007)
High tech is America’s largest export sector ($220 billion), making up 21 percent of total U.S. exported goods in 2006. The European Union was the top importer of these goods, followed by Canada, Mexico and China.
(American Electronics Association, 2007)
According to the U.S. Small Business Administration, small businesses comprise 97 percent of all U.S. direct exporters, generate 60 to 80 percent net new American jobs annually, and 29 percent of U.S. export value.
(U.S. Small Business Administration, Breaking into the Trade Game, 2005)
About 65 percent of all U.S. exports come from small businesses with fewer than 20 employees, according to the U.S. Trade Representative.
(U.S. Small Business Administration, Breaking into the Trade Game, 2005)
According to a recent consumer survey commissioned by CEA: 69 percent of Americans agree being able to trade with other countries is good for the U.S. economy. Of these respondents: o 90 percent believe the US benefits from trade because trade helps keep U.S. companies competitive o 74 percent believe the US benefits from trade because trade helps keep prices low o 64 percent believe the US benefits from trade because trade helps create jobs in the US 60 percent of Americans agree trading with other countries helps make the U.S. a great nation 56 percent of Americans agree that on a level playing field, U.S. companies can compete with any company in the world 52 percent of Americans agree international trade benefits them as a U.S. consumer 68 percent of Americans agree international trade helps to provide greater selection of consumer electronics products 62 percent of Americans agree that if the U.S. were to decrease trade with other countries, they feel they would end up paying more for consumer electronics products